Vistin Pharma — Interim / Quarterly Report 2016

Feb 28, 2017

VISTIN PHARMA ASA FOURTH QUARTER 2016 RESULTS PUBLISHED 28 FEBRUARY 2017

CONTENTS

Vistin Pharma in brief2
Overview 3
Financial review 6
Operational review7
Market developments 9

Risks and uncertainties 11
Outlook 11
Share information 12
Condensed Interim Financial Statements 13

Vistin Pharma in brief

Vistin Pharma is a Norwegian pharmaceutical company producing Active Pharmaceutical Ingredients (APIs) and solid dosage forms for the global pharmaceutical industry.

The Group was established in 2015 when Vistin Pharma AS, a wholly owned subsidiary of Vistin Pharma ASA, acquired the B2B business and tablet production assets from Weifa AS. Vistin Pharma also signed a five-year agreement with Weifa AS for the manufacture of its key pain relief brands, such as Paracet, Ibux and Paralgin forte. The transaction was completed on 1 June 2015. Vistin Pharma conducted an equity issue of about NOK 170 million to finance the acquisition and to secure working capital, and the shares of Vistin Pharma ASA were listed on Oslo Axess on 10 June 2015.

With more than 75 years of pharmaceutical industry experience, the Group has built significant capacity and expertise as an API and Solid Dosage Form provider to producers all over the world, and Vistin Pharma's APIs are marketed in more than 50 countries.

Vistin Pharma has key positions and growth potential in the international Metformin and Opioid markets, and a strong foundation for creating a highly efficient CMO business.

The Group has more than 140 employees and two manufacturing facilities in Kragerø, Norway. Both of the facilities are certified in accordance with current Good Manufacturing Practice (cGMP). The Company's head office is located in Oslo, Norway.

Overview

Fourth quarter highlights

• Metformin: Marginal higher sales volume despite reactor failure
• Revenue of NOK 32.5 million for the quarter vs. NOK 41.8 million in Q4 2015, reduction largely due to more HCl volume being sold vs. DC volume
• Approx. NOK 10 million in revenue lost due to a temporary stop in production following a reactor breakdown in November
• Plant resumed full production on 18 December after installation of a new reactor
• Opioids: High sales volumes, but lower prices
• Revenue of NOK 30.4 million for the quarter vs. NOK 20.1 million in Q4 2015
• Increased sales following a weak Q3, but price pressure continued
• Tablets contributing to 41 percent of revenue, compared to 24 percent in Q4 2015
• CMO: Cost reduction program to improve competitiveness in progress
• Revenue of NOK 30.7 million for the quarter vs. NOK 33.9 million in Q4 2015
• Cost reduction program includes staff reductions of 20-25 employees (30-35% of CMO workforce), and a provision for redundancies and reorganisation of NOK 5.8 million
• Financial performance
• Group adj. EBITDA of negative NOK 1.5 million for the fourth quarter
• Cash balance at 31 December of NOK 89.4 million, and no interest-bearing debt
• The Board will propose a dividend of NOK 17.1 million (NOK 1.00 per share) for 2016

Key figures

Key financial information for Vistin Pharma ASA (business operations commenced 1 June 2015)

(NOK 1 000)	Q4 2016	Q4 2015	FY 2016	FY 2015
Total revenue and income	93 643	104 536	394 773	227 892
EBITDA	(8 999)	13 047	21 957	27 883
Adj. EBITDA*	(1 451)	4 380	29 505	19 216
Profit/(loss)	(7 776)	8 000	12 919	19 122
Earnings per share (NOK): diluted	(0,46)	0,47	0,76	1,12
Total Assets	279 517	259 008	279 517	259 008
Cash & cash equivalents	89 440	61 989	89 440	61 989
Interest-bearing debt	-	-	-	-

*Adj. in Q4 2016 of NOK 5.8 million in provision for employee reductions in CMO and one-off costs in connection with a reactor failure at the metformin (B2B) plant of NOK 1.7 million. Adj. in Q4 2015 of NOK 8.7 million in net proceeds relating to business transfer from Weifa AS.

Key figures per segment

(NOK 1 000)	Q4 2016	Q4 2015	FY 2016	FY 2015
Total revenue and income
B2B	62 915	61 942	272 471	150 327
CMO	30 728	33 927	122 302	68 898
HQ & other	-	8 667	-	8 667
Total revenue and income	93 643	104 536	394 773	227 892
EBITDA
B2B	(286)	2 807	28 113	18 907
CMO	(7 511)	3 554	(3 124)	4 423
HQ & other	(1 202)	6 686	(3 032)	4 553
EBITDA	(8 999)	13 047	21 957	27 883

The following information is provided for information purposes and presents the key financial figures for the B2B segment, as reported by Vistin Pharma ASA (from 1 June 2015), Weifa ASA (before 1 June 2015) and Weifa AS (before to 15 August 2014). No additional information is provided for the CMO segment, as this is a new segment following the acquisition of the tablet production assets from Weifa.

VISTIN PHARMA ASA – FOURTH QUARTER REPORT 2016

(NOK million)	Q4 2016	Q4 2015	FY 2016	FY 2015
Revenue	62,9	61,9	272,5	257,7
Adj. EBITDA	1,4	2,8	29,8	24,8

Historical quarterly performance by segment (as defined above):

*Adj. in Q4 2016 of NOK 1.7 million in one-off costs in connection with a reactor failure at the metformin (B2B) plant.

Note: The above figures are provided for information purposes and presents the key financial figures for the B2B segment, as reported by Vistin Pharma ASA (from 1 June 2015), Weifa ASA (before 1 June 2015) and Weifa AS (before 15 August 2014).

*Adj. in Q4 2016 of NOK 5.8 million in provision for employee reductions.

Financial review

Vistin Pharma ASA was established in February 2015, and the Group had no operating activities prior to Vistin Pharma AS' acquisition of the B2B business and tablet production assets from Weifa AS on 1 June 2015. Hence, most of the figures presented in the consolidated interim financial statements represent the financial result of the B2B and CMO business acquired from 1 June 2015.

Vistin Pharma ASA (Group)

Profit and loss

Vistin Pharma had total revenue and other income of NOK 93.6 million in the fourth quarter 2016, compared to NOK 104.5 million in the fourth quarter 2015. The total revenue and other income in the fourth quarter in 2015 included net proceeds of NOK 8.7 million from a settlement relating to the business transfer from Weifa AS.

EBITDA came to negative NOK 9.0 million for the fourth quarter, compared to NOK 13.0 million for the same quarter last year. Included in the EBITDA for the quarter is a provision of NOK 5.8 million for redundancies and reorganisation at the Company's tablet manufacturing facility in Kragerø, and one-off costs of approximately NOK 1.7 million relating to the reactor failure at the metformin plant. The EBITDA has also been negatively impacted by approximately NOK 5.1 million from 261 metric tonnes (MT) of metformin sales volume lost, due to the temporary production stop in the quarter. The EBITDA in the fourth quarter of 2015 included net proceeds of NOK 8.7 million from a settlement relating to the business transfer from Weifa AS.

Depreciation and amortisation were NOK 1.1 million for the fourth quarter, compared to NOK 0.7 million for the fourth quarter of 2015.

Net financial loss was NOK 0.4 million, compared to a net loss of NOK 1.4 million in the same quarter of 2015. The financial loss primarily reflects net unrealised foreign exchange losses for the quarter.

Vistin Pharma had an income tax expense of negative NOK 2.7 million in the fourth quarter, compared to NOK 3.0 million in the corresponding quarter of 2015.

Net loss for the quarter was NOK 7.8 million, corresponding to earnings per share of negative NOK 0.46, compared to net profit of NOK 8.0 million and earnings per share of NOK 0.47 respectively for the same quarter 2015.

Cash Flow

Net cash flow from operating activities in the fourth quarter was positive at NOK 25.2 million. A net loss before tax of NOK 10.5 million for the quarter, was more than offset by a reduction in inventory and trade receivables and increased trade payables. Net cash flow from operating activities in the fourth quarter last year was a positive of NOK 49.1 million.

Net increase in cash and cash equivalents amounted to NOK 16.7 million, compared to an increase of NOK 43.9 million for the corresponding quarter 2015.

Financial position

Vistin Pharma had total assets of NOK 279.5 million as of 31 December 2016. Cash and cash equivalents amounted to NOK 89.4 million. The figures as of 31 December 2015 were NOK 259.0 million and NOK 62.0 million, respectively.

Total equity as of 31 December 2016 was NOK 186.6 million, compared to NOK 183.9 million as of 31 December 2015. This corresponds to an equity ratio of 66.8 percent (71.0 percent).

Vistin Pharma had no interest-bearing debt as of 31 December 2016.

The Board will recommend for the annual general meeting to approve a dividend of NOK 17.1 million, equal to NOK 1.00 per share.

Operational review

Vistin Pharma's operations consist of the following two segments: B2B (production and sale of Active Pharmaceutical Ingredients) and CMO (contract manufacturing of finished dose tablets). The B2B segment has two major product groups; metformin and opioids. The CMO segment started operations on 1 June 2015 and has no comparable figures for periods prior to that. The segment currently only consists of the CMO agreement with Weifa AS. The operations in the B2B segment represent a continuation of activities previously carried out and reported in Weifa ASA. Since Vistin Pharma acquired this business on 1 June 2015, pro-form historical figures have been included for periods prior to that date to provide a better understanding of operational developments. However, these figures are based on data from Weifa ASA and reflect a different corporate structure and cost base, which means they are not directly comparable.

B2B

Vistin Pharma is a recognised supplier of Active Pharmaceutical Ingredients (APIs) and finished dosage forms (FDFs) to the global pharmaceutical industry. The B2B offering is based on two key product areas: metformin and opioids. Metformin is an API used in firstline treatment of type 2 diabetes. Opioids are used in pain treatment as well as in cough suppressants. The APIs are produced at Vistin Pharma's two manufacturing plants in Kragerø (Fikkjebakke and Gruveveien) in southern Norway. Vistin Pharma's B2B customers are international pharmaceutical companies.

Total revenue for the B2B segment in the fourth quarter was NOK 62.9 million, compared to NOK 61.9 million in the same quarter of 2015.

The increase in revenue for the quarter is mainly explained by a significant higher sales volume of opioids API and tablets, which more than offset a reduction in metformin revenue.

Sales volumes of opioids for the quarter were significantly higher than in the same quarter of 2015, for both API and tablets.

B2B sales volumes may typically fluctuate significantly during the year. However, underlying growth in the B2B segment is strong and total revenue for the full year 2016 was NOK 272.5 million, compared to NOK 257.7 million in 2015.

In order to improve business profitability, Vistin Pharma continuously seeks to achieve operational excellence, in part through capacity, quality and cost improvement programs. In addition, it focuses on business development and strategic partnership opportunities to continue growing the business.

Metformin

Revenue from metformin was 32.5 million for the quarter. This is 22.2 per cent lower than the fourth quarter 2015. API volumes sold were approximately in line with the previous year, but the reduced revenue was mainly a result of a change in product mix from Direct compressible (DC) to bulk (HCl). Also, because of lower sales volumes available for sale following the reactor failure, approximately NOK 10 million in sales were lost during the quarter.

Production at Vistin Pharma's metformin plant was temporarily halted in November due to an unscheduled maintenance stop to repair one of the reactors. A new reactor was installed successfully and on time, and the plant resumed full production on 18 December. The reactor failure was unexpected, as the reactor had recently undergone inspection by an independent evaluator and certified for another five years. The temporary stop in production is not expected to have a negative impact on sales volumes going forward.

As a consequence of the reactor defect, a discharge of butanol and metformin to water, which exceeded the current permit levels, occurred. The incident was reported to the Norwegian Environment Agency (NEA), and the Company has implemented measures to prevent further discharges above the permitted levels.

Vistin Pharma continues to find that the quality of its metformin products, its service and delivery performance are competitive advantages and drivers for increased sales, and the Group is experiencing a strong underlying growth. Key drivers are continued volume growth from existing multinational customers and a successful market expansion in Japan.

The Group's plant at Fikkjebakke is dedicated to manufacturing metformin. It has been approved by several international regulatory bodies and by the US Food and Drug Administration (FDA). Vistin Pharma is currently one of few European companies with a listed metformin Drug Master File (DMF) in the USA. Accelerating in this premium market is another focus area for Vistin Pharma.

Vistin Pharma's metformin strategy is to become the dominant supplier of metformin API to customers in the premium product segments.

According to Vistin Pharma's estimates, the Group currently controls about eight percent of the global metformin market with its annual manufacturing capacity of 3,000 metric tonnes.

To secure the necessary production capacity to meet the expected future long-term demand for metformin HCl, both from existing and new customers, the Company in 2016 decided to increase the production capacity at the Fikkjebakke site by 3,000MT.

This capacity increase will require an investment of approximately NOK 120 million, which will be financed through existing cash reserves, cash generation and debt. The new production line is expected to be fully operational during 2019, and the expansion project is currently in the detailed engineering phase.

In parallel, the Company is working on stretching the current capacity by approximately 500 MT (+ ~16 percent capacity increase) through an efficiency program. The objective is to ensure that Vistin Pharma can meet the expected increase in demand in the short-term.

With the new production capacity, the Company is targeting a share of approximately 15 percent of the global Metformin API market.

Opioids

Opioids revenue for the fourth quarter was NOK 30.4 million, compared to NOK 20.1 million in the fourth quarter of 2015. The total volume sold in the fourth quarter was significantly higher than the volume sold in the fourth quarter of 2015 for both API and tablets. Revenue from the sale of codeine tablets constituted approximately 41 percent of the opioid revenue for the fourth quarter 2016, compared to approximately 24 percent in the same quarter last year. The Company's focus is to further strengthen its tablet business and forward integrate in the opioids value chain.

As reported in previous quarters, there still is considerable price pressure and supply–demand instability in the opioid market, which has resulted in lower API prices in 2016 compared to 2015. However, corresponding lower rawmaterial prices have reduced the negative margin impact on API sales. Reduced supply of raw material is expected to improve market balance in the medium term.

The plant in Gruveveien manufactures opioid APIs, as well as finished dose tablets. Vistin Pharma serves the global market for opioid APIs with two key products; codeine (used in strong painkillers and cough medicine) and pholcodine (used in cough medicine). It also produces finished dose painkiller combination tablets such as Paralgin forte (paracetamol plus codeine) for Weifa and several codeine and codeine combination products for a B2B customer.

According to management estimates, Vistin Pharma has a global share of about seven percent of the codeine API market. About half of the global market is made up of closed markets with import restriction, which Vistin Pharma currently is unable to enter. These markets include the USA, South Africa, France and Spain.

CMO

The CMO tablet manufacturing business produces finished products at the Gruveveien multipurpose tablet facility based on a longterm supply agreement with Weifa. Vistin Pharma has a five-year agreement with Weifa AS for the manufacture of its key pain relief brands, such as Paracet, Ibux and Paralgin forte. This currently represents the Group's main CMO activity.

CMO tablet manufacturing was not established as a separate business area until 1 June 2015. However, the Vistin Pharma organisation has produced finished dose tablets for Weifa and other external customers for many years, while being a part of Weifa. Therefore, the Group is an experienced CMO. Revenue for this segment was NOK 30.7 million for the fourth quarter, compared to NOK 33.9 million in the same quarter of 2015. The service level for the fourth quarter was 99 percent (customer orders delivered on time and in full).

On 5 December 2016, Vistin Pharma announced a cost savings plan to improve the Company's competitiveness within tablet manufacturing. The plan includes a staff reduction of 20-25 full-time employees at the Company's tablet manufacturing facility (30-35% of CMO workforce), which upon completion in early 2018 will result in annualised cost savings in the range of NOK 20-30 million.

These cost savings will significantly strengthen the Company's competitiveness in the international CMO market, and enable Vistin Pharma to offer competitive prices for tablet manufacturing. Vistin Pharma's target is to increase its production capacity from today's level of approximately 750 million tablets by at least 50 per cent via the ongoing operational excellence program.

Market developments

B2B

Metformin tablets are the most widely prescribed diabetes medication in the world. Approximately 90 percent of people with diabetes are affected by Type 2 Diabetes (hereinafter T2D). T2D usually occurs in adults, but is increasingly seen in children and adolescents. The growth in T2D is associated with ageing populations, economic development, increasing urbanisation, less healthy diets and reduced physical activity. While a human body suffering from T2D is still able to produce insulin, it becomes resistant so that the insulin is ineffective. Over time, insulin levels may subsequently become insufficient. Both the insulin resistance and the deficiency lead to high blood glucose levels. According to the International Diabetes Federation (IDF), today more than 415 million people are estimated to be living with this condition. The number is expected to increase to 642 million by 2040. Metformin has limited side effects, a long-term safety profile in addition to being an affordable treatment alternative. Therefore, Metformin is the preferred first line treatment for T2D patients. Metformin is expected to maintain its position as the Gold Standard treatment in the foreseeable future (GlobalData, 2016). The market is expected to grow by seven to eight

percent per annum for many years to come. Global diabetes healthcare costs amounted to USD 673 billion in 2015, representing 12 percent of total healthcare costs worldwide in 2015. Close to 5 million people died from diabetes last year. Approximately 50 percent of adults with diabetes are undiagnosed.

The Metformin's global finished product sales is estimated to increase from USD 2.9 billion USD in 2015 to around USD 4.3 billion in 2025. The significant growth driver is an increasing T2D prevalence.

The market is highly competitive, with manufacturers mainly from India and China, and approximately 65 percent of the global metformin volume is currently produced in India. Many producers of metformin are operating multipurpose facilities, and there is an underlying unused capacity among the metformin producers that can absorb the growing demand for metformin. Vistin Pharma is focusing on customers, which sells patented products, as well as large professional generic players, and finds that customers in Europe, Japan and other developed economies value suppliers with short lead times, high quality products, agile operations and regularity of supply.

The global opioid sector is a protected market, tightly controlled by the International Narcotics Control Board (INCB). Several major markets are also subject to import quotas. Growth in the use of opioids is stable worldwide and demand, measured by defined daily doses, has increased more than threefold over 20 years (corresponding to a compound annual growth rate (CAGR) of 6.5 percent). The main industry drivers are longer life expectancies – increasing incidence of chronic diseases, increased worldwide access to pain relief treatments, from moderate to severe grade and new product releases of narcotic derivatives for nonpain treatment such as obesity, alcoholism, constipation and anti-tumoral. Emerging countries represent the biggest expansion potential, as rising wealth drives demand for pain medication. According to WHO report 2015, only one quarter of the world's population has access to pain relief treatments China and India are expected to be the fastest growing opioids markets by 2020. According to INCB, global consumption of opioids for pain relief is unevenly distributed with the US, Western Europe and Oceania, representing only 17 percent of the global population, consuming 92 percent of the volume. Global manufacturing of codeine API has grown by about 6.4 percent annually to more than 400 MT, but a more moderate growth of 1 - 2 percent is expected in the coming years, primarily as a result of tighter restrictions in the USA and India. About 70 percent of the volume is consumed as codeine, while roughly 20 percent is used to make other APIs.

According to the INCB, the global production of opiate raw materials rich in morphine exceeded global demand in 2015, resulting in high inventory levels. The excess supply was expected to be reduced the following year due to decreased cultivation in most major producing countries, supporting a balance between supply and demand in the medium term.

European opioid API suppliers are few in number. Vistin Pharma's main competitors have access to their own raw materials, and a small number of raw material producers control most of the global supply. Vistin Pharma is the largest independent company with both inhouse API and tablet manufacturing capabilities and competencies (forward integrated).

CMO

Vistin Pharma will seek to increase tablet manufacturing volumes, acting as an independent supplier of finished dose formulations (FDFs) to the global generic and proprietary pharmaceutical industry by establishing itself as an FDF contract development and manufacturing organisation (CDMO) strategic partner. According to Mordor Intelligence LLP (Global Pharmaceutical Manufacturing Market), the global CMO market is estimated at USD 58 billion in 2016, and is expected to reach USD 84 billion, corresponding to a CAGR of 6.4 percent by 2021. Key growth drivers are; outsourcing by companies that do not see supply chain as a core business area, margin pressure in both the innovative and generic pharma market, and pharma industry consolidation leading to post-merger cost saving initiatives.

The Group's focus on further improving operational excellence to make the supply chain cost-competitive, expand product offerings, and grow volumes and customer base in order to capture additional economies of scale, continues.

Risks and uncertainties

Vistin Pharma is exposed, as a pharmaceutical manufacturing company, to several types of risks, where fluctuations in the price and availability of raw materials and the development in foreign exchange (USD and EUR) are among the most prominent. Therefore, risk management is a priority area for the Group. Approximately two thirds of the EUR currency exposure (cash inflow) for 2017 has been hedged at an average rate of EUR/NOK 9.17.

In addition, risk related to regulatory changes and environmental issues concerning emission levels and emission permits represent central risk factors to the Group.

Currently, Weifa is the Group's only customer in the CMO segment. Any material reduction in the sales of Weifa products produced by Vistin Pharma will consequently have a negative impact on the financial results of the CMO segment.

For further information, please refer to the Annual Report for 2015, available on the Group's website www.vistin.com.

Outlook

The metformin business is experiencing growing demand as a result of favourable overall market developments, with a strong underlying growth for metformin globally, and because of Vistin Pharma's position as a premium supplier. Vistin Pharma expects this trend to continue in the foreseeable future. As a result, the Company has decided to increase the current production capacity by another 3,000MT, a doubling from the current capacity. The expansion will be financed through existing cash reserves, cash generation and debt.

Long-term drivers for the opioid market indicate an attractive future growth potential. However, price pressure and an unstable demand and supply in the global opioid market will affect prices and volumes for Vistin Pharma negatively in the short to medium term. This will partly be offset by strategic long-term narcotic raw material supply agreements and business partnerships with raw-material producers, securing raw materials at competitive prices.

The Company has implemented an operational excellence program within the CMO business, which is expected to reduce costs, and improve the profitability and competitiveness in the medium term.

Share information

The Company had 17 054 935 issued shares on 31 December 2016. The 20 largest shareholders controlled 74.4 percent of the total number of outstanding shares.

Largest shareholders at 20 February 2017

NAME	SHAREHOLDING % SHARE
STRATA MARINE & OFFSHORE*	1 965 943	11,53 %
QVT FUND V LP FUND	1 869 797	10,96 %
STOREBRAND VEKST	1 579 860	9,26 %
MP PENSJON PK	877 870	5,15 %
SKANDINAVISKE ENSKILDA	839 352	4,92 %
SOLAN CAPITAL AS	787 482	4,62 %
HOLBERG NORGE	771 182	4,52 %
FERNCLIFF LISTED DAI*	582 282	3,41 %
DUKAT AS	547 500	3,21 %
QVT FUND IV LP FUND	436 273	2,56 %
CIPRIANO AS*	375 538	2,20 %
SPETALEN ØYSTEIN STRAY*	323 650	1,90 %
TVENGE TORSTEIN INGVALD	300 000	1,76 %
QUINTESSENCE FUND	242 740	1,42 %
SVENSKA HANDELSBANKEN	240 000	1,41 %
UCITS FUND AKTIA NORDIC MICRO CAP	230 640	1,35 %
NORDBY KJELL ERIK**	200 000	1,17 %
GRANT INVEST AS	184 407	1,08 %
BORGEN INVESTMENT GRUPPEN	177 486	1,04 %
STATOIL PENSJON	159 718	0,94 %
Total 20 largest shareholders	12 691 720	74,4%
Other shareholders	4 363 215	25,6%
Total number of shares	17 054 935	100,0%
* Board members of Vistin Pharma, or companies controlled by Board members

** Executive management

Consolidated Statement of Comprehensive Income

(NOK 1 000)	Q4 2016	Q4 2015	FY 2016	FY 2015
Revenue	92 319	95 011	392 025	218 367
Other income	1 324	9 525	2 748	9 525
Total revenue and income	93 643	104 536	394 773	227 892
Cost of materials	46 036	37 943	163 198	81 646
Payroll expenses	37 125	31 667	132 868	71 081
Other operating expenses	19 482	21 879	76 751	47 282
Depreciation, amortisation and impairment	1 110	701	4 053	1 568
Operating profit/(loss)	(10 109) 12 346		17 904	26 315
Finance income	177	(1 415)	176	444
Finance costs	572	(48)	991	544
Profit/(loss) before tax	(10 504) 10 979		17 089	26 215
Income tax expense	(2 728)	2 979	4 170	7 093
Profit/(loss) for the period	(7 776)	8 000	12 919	19 122
Total comprehensive income for the period	(7 776)	8 000	12 919	19 122
Earnings per share (NOK): basic	(0,46)	0,47	0,76	1,12
Earnings per share (NOK): diluted	(0,46)	0,47	0,76	1,12

Consolidated Statement of Financial Position

(NOK 1 000)	Note 31.12.2016 31.12.2015
ASSETS
Non-current assets
Property, plant & equipment	53 552	41 331
Total non-current assets	53 552	41 331
Current assets
Inventory	79 316	92 712
Trade receivables	45 365	54 760
Other receivables	11 844	8 216
Cash & cash equivalents	5 89 440	61 989
Total current assets	225 965	217 677
Total Assets	279 517	259 008
EQUITY AND LIABILITIES
Equity
Share capital	3 17 055	17 055
Share premium	137 514	147 747
Retained earnings	32 042	19 122
Total equity	186 610	183 924
Non-current liabilities
Deferred tax liabilities		2 52
Other long-term liabilities	12 288	10 332
Total non-current liabilities	12 290	10 384
Current liabilities
Trade payables	37 459	28 190
Tax Payables	4 221	4 915
Other current liabilities	38 937	31 595
Total current liabilities	80 617	64 700
Total liabilities	92 907	75 084
Total Equity and Liabilities	279 517	259 008

Statement of Changes in Equity

		Share	Share	Retained
(NOK 1 000)	Note	capital	premium		earnings Total equity
Equity as at 06.03.2015		1 000	-	-	1 000
Total comprehensive income		-	-	19 122	19 122
Issue of share capital
Rights- and employee offering, June		17 055	153 494	-	170 549
Share capital reduction, June		(1 000)	-	-	(1 000)
Share issue costs		-	(5 748)	-	(5 748)
Equity as at 31.12.2015		17 055	147 746	19 122	183 923
Equity as at 01.01.2016		17 055	147 747	19 122	183 924
Total comprehensive income		-	-	12 919	12 919
Dividend paid		-	(10 233)	-	(10 233)
Equity as at 31.12.2016		17 055	137 514	32 041	186 610

Cash Flow Statement

(NOK 1 000)	Note	Q4 2016	Q4 2015	FY 2016	FY 2015
Cash flow from operating activities
Net profit/(loss) before income tax		(10 504)	10 979	17 089	26 215
Income tax paid		-	-	(4 915)	-
Non-cash adjustment to reconcile profit before tax to cash flow:
Depreciation, amortisation and impairment		1 110	701	4 053	1 568
Unrealised foreign currency (gains)/losses		(188)	(2 701)	(966)	2 421
Changes in working capital:
Changes in trade receivables and trade creditors		19 370	6 887	18 663	(22 612)
Changes in inventory		7 395	7 849	13 396	(11 051)
Changes in other accruals		7 678	24 004	5 945	34 382
Finance (income)/expense		395	1 367	815	100
Net cash flow from operating activities		25 255	49 086	54 080	31 023
Cash flow from investing activities
Purchase of equipment		(8 460)	(5 333)	(16 274)	(11 840)
Acquisition of business		-	-	-	(120 000)
Interest received		-	130	-	130
Net cash flow from investing activities		(8 460)	(5 203)	(16 274)	(131 710)
Cash flow from financing activities
Proceeds from share issue		-	-	-	171 549
Transaction costs on the issue of shares		-	-	-	(7 873)
Repayment of capital		-	-	-	(1 000)
Dividend paid		-	-	(10 233)	-
Interest paid		(65)	-	(121)	-
Net cash flow from financing activities		(65)	-	(10 354)	162 676
Net change in cash and cash equivalents		16 730	43 883	27 452	61 989
Cash and cash equivalents beginning period		72 709	18 107	61 989	-
Cash and cash equivalents end period		89 439	61 990	89 441	61 989

Notes to the Condensed Interim Financial Statement

1. Basis of presentation

The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). This financial information should be read together with the financial statements for the year ended 31 December 2015, prepared in accordance with International Financial Reporting Standards ("IFRS"). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. The figures are unaudited.

The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

2. Segment reporting

(NOK 1 000)	Q4 2016	Q4 2015	FY 2016	FY 2015
Total revenue and income
B2B	62 915	61 942	272 471	150 327
CMO	30 728	33 927	122 302	68 898
HQ & Other	-	8 667	-	8 667
Total revenue and income	93 643	104 536	394 773	227 892
EBITDA
B2B	(286)	2 807	28 113	18 907
CMO	(7 511)	3 554	(3 124)	4 423
HQ & Other	(1 202)	6 686	(3 032)	4 553
EBITDA	(8 999)	13 047	21 957	27 883
Operating assets (NOK 1 000)				31.12.2016 31.12.2015
B2B			128 464	150 092
CMO			42 985	34 936
HQ & Other			103 502	73 980
Total segments			274 951	259 008
Operating liabilities
(NOK 1 000)				31.12.2016 31.12.2015
B2B			21 422	16 415
CMO HQ & Other			459 66 803	(115) 53 817
Total segments			88 684	70 117
Reconciliation of assets
(NOK 1 000)				31.12.2016 31.12.2015
Segment operating assets			274 951	259 008
Total operating assets			274 951	259 008
Reconciliation of liabilities
(NOK 1 000)				31.12.2016 31.12.2015
Segment operating liabilities			88 684	70 117
Tax Payable			4 221	4 915
Deferred tax liabilities			2	52
Total operating liabilities			92 907	75 084

3. Share capital

	Number of shares (1 000)	Share capital (NOK 1 000)
At 6 March 2015	1 000	1 000
Rights- and employee offering, June	17 055	17 055
Share capital reduction, June	(1 000)	(1 000)
At 31 December 2015	17 055	17 055
At 31 December 2016	17 055	17 055

4. Interest-bearing debt

Vistin Pharma ASA had no interest bearing debt as of 31 December 2016. The Group has a credit facility of NOK 25 million with Nordea Bank. No amount was drawn as of 31 December 2016.

5. Cash and cash equivalents

(NOK 1 000)	31.12.2016	31.12.2015
Cash at bank	89 440	61 989
Cash and cash equivalents	89 440	61 989

Cash at banks earns interest at floating rates based on daily bank deposit rates. As of 31 December 2016 negative NOK 1.1 million (USD 9.5 million) and NOK 3.4 million (EUR 0.4 million) of the cash at bank was denominated in USD and EUR, respectively.

The Group has a restricted bank account of NOK 3.0 million relating to employees withholding taxes. In addition, the Group has a guarantee provided by Nordea for the same of NOK 6.5 million.